Lack of
knowledge puts them at greater risk
by Katherine Skiba, AARP,
September 26, 2019
Most Americans age 65 and older don't have
some of the most common financial scams on their radar, a new survey shows.
Six in 10 respondents were not aware of the
so-called pigeon drop scam, according to an online survey conducted for the
American International Group, or AIG, a global finance and insurance company.
In a pigeon drop, a bad actor purports that a
large amount of money has been found and it will be shared with a victim after
he or she forks over some money.
That and other findings show many older
Americans are vulnerable to manipulation and deceit, says Kevin Hogan, CEO of
AIG Life & Retirement, which commissioned the national survey.
On the positive side, most seniors are taking
steps to safeguard their wealth by, for example, not responding to urgent calls,
texts or emails asking
for personal information, the survey found.
Other key findings:
·
57 percent of survey
respondents age 65-plus were not aware of online romance
scams in which a victim is asked for money or something of
value.
·
57 percent were not
aware of invoice scams in which a victim is contacted by someone claiming to
work on behalf of a company, such as a utility,
to collect fees.
·
52 percent were not
aware of prepaid credit card or debit card scams in which a victim is asked to
make a payment or multiple payments to a utility — or other business — to
eliminate a debt.
One in 10 seniors were not aware of any of 10
common financial scams, the survey found.
Savvy seniors step up
On the bright side, seniors recognize the need
to protect themselves, including the 92 percent of respondents age 65-plus who
said they ignore calls, texts or emails asking for personal information.
In addition, 89 percent of respondents age
65-plus said they do not click on links in emails sent by strangers; 65 percent
said they review their credit reports; 63 percent said they set up alerts from
their financial institution; and 60 percent said they only give out personal
financial information by phone if they initiated the call.
AIG, based in New York City, warns that as
older Americans enjoy the fruits of their labor during their golden years,
their financial security may be jeopardized by cognitive decline as well as
fraud and financial exploitation.
"We all want to age with grace, maintain
independence for as long as possible and have the freedom to manage our money
accordingly,” Hogan says. “Longer lives and longer retirements often require a
collaborative effort to help seniors protect themselves and ensure their
savings can last a lifetime.”
The survey was conducted by Morning Consult
last June 20-23 and has a margin of error of 2 percentage points, according to
AIG.
AARP’s Fraud Watch Network can help you spot
and avoid scams. Sign up for free “watchdog alerts,"
review our scam-tracking
map, or call our toll-free fraud helpline at
877-908-3360 if you or a loved one suspect you’ve been a victim.
More on Scams & Fraud
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